On July 14, the Centers for Medicare & Medicaid Services (CMS) issued new guidance for states with respect to the home and community-based services (HCBS) Settings Rule. Citing the COVID-19 pandemic, CMS is extending key deadlines for compliance with the Settings Rule. While these are applied to state agencies, many LeadingAge members will be ultimately subject to the Settings Rule and should note these updates.

The Explainer breaks down the information by type of distribution (e.g., General Distribution, SNF Targeted Distribution or Medicaid/CHIP Distribution), lists available resources both internal and external, identifies and defines the steps providers must undertake upon receipt of funds, defines key terms, highlights hot topics and discusses additional frequently asked questions.

Effective May 22nd, HUD has lifted the suspension on MORs in locations where there are no health restrictions by state or local law. LeadingAge has pushed back on the restarting of MORs, regardless of an area’s “reopening” status, because of the ongoing health risk at older adult communities.

In response to requests by LeadingAge members and other housing providers across the country, HUD has issued new flexibility for turning over units in affordable housing communities during the health crisis. The temporary and retroactive flexibility allows owners of senior housing communities, as well as Section 8 and 811 properties, to prioritize the health of residents and staff over financial losses by delaying unit readiness if necessary.

Prioritizing Health of Staff and Residents

On July 1st, HUD published additional information for owners and residents of HUD-assisted housing about the expiring evictions moratorium. Evictions of HUD-assisted households for non-payment of rent were halted for 120 days by the CARES Act; the moratorium expires July 24th unless extended by Congress.

There have been some state agencies investigating and/or reminding providers of the CDC recommendation and the OSHA requirement of a respiratory protection plan in nursing communities pursuant to 29 CFR § 1910.134. This issue involves the fitting of N95 masks and training protocols around respiratory protection. Pursuant to the language of the OSHA regulation, it should also include a medical evaluation of each employee on whether they are medically appropriate to wear such a mask.

On July 6th, LeadingAge hosted a call featuring an update from David Vargas, Deputy Assistant Secretary for HUD’s Real Estate Assessment Center (REAC). LeadingAge expressed their gratitude to Vargas and staff for the work they have done during this difficult time, including acting quickly to suspend inspections early during the pandemic.

Physical Inspections in Senior Housing Communities during COVID-19

Join LeadingAge for a special edition of the Housing Advisory Group on Monday, July 6th, from 12:30-1:30pm ET: HUD REAC leadership, including Deputy Assistant Secretary David Vargas and Director Steve Bolden, will provide updates on physical inspections in HUD-assisted housing during COVID-19, in particular strategies for prioritizing health and safety in senior housing communities.

HUD will provide a supplement to Section 202 providers to cover COVID-19 costs starting in July. A HUD official described various issues that has slowed HUD’s release of the CARES Act’s $50 million for the Section 202 program and said HUD is readying to move these funds to providers. 

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